Question

Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 4,400 5,100 4,960 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,100 units. The budgeted production units for July are:

Answer 1

the budgeted production units for July are 4,575 units

Step-by-step explanation:

The computation of the budgeted production units for July are shown below:

= July units + ending units - beginning untits

= 4,400 units + (5,100 × 25%) - 1,100 units

= 4,400 units + 1,275 units - 1,100 units

= 4,575 units

Hence, the budgeted production units for July are 4,575 units

Hence, the same would be considered and relevant